Nationwide Reports $723 Million Net Operating Income Through Third
Quarter 2012

Immediate focus on serving members impacted by Hurricane Sandy

November 09, 2012 12:00 PM Eastern Time

COLUMBUS, Ohio--(BUSINESS WIRE)--Nationwide today reported net operating income of $723 million through
the first nine months of 2012. This compares to $375 million during the
same period in 2011.1

“We saw a significant jump in P&C earnings through nine months of 2012
due to lower claims and continued business growth, with premiums up
across all major commercial and personal business lines”

“At a time when so many of our members have been affected by the
terrible devastation of Hurricane Sandy, we are doing everything humanly
possible to help those who have experienced loss,” said Steve Rasmussen,
Chief Executive Officer for Nationwide. “While we’re still in the early
stages of assessing damage and processing claims, we want our members to
know that Nationwide is strong and stable with the capital strength to
deliver on our promises to protect what matters most.”

Nationwide has deployed claims teams and mobile response units across
the Northeast, Midwest and Mid-Atlantic regions to adjust claims as
quickly as possible. Claims and financial results related to Hurricane
Sandy will be reflected in the company’s fourth quarter operating
results.

Through September, lower weather-related claims and solid growth in the
company’s property & casualty (P&C) business drove Nationwide’s rebound
in earnings from the previous year. Nationwide’s financial services
business also continued to contribute significantly to earnings as
customer assets managed by the company reached a record level.

Nationwide paid more than $10.0 billion to members in the form of
claims, life insurance benefits and other payments through the first
nine months of 2012. Total operating revenue for first nine months was
$16.6 billion, compared to $15.6 billion during the same period in 2011.

“We saw a significant jump in P&C earnings through nine months of 2012
due to lower claims and continued business growth, with premiums up
across all major commercial and personal business lines,” said Chief
Financial Officer Mark Thresher. “In our financial services business,
robust equity market performance and strong net flows in 2012 drove our
customer assets to record levels. While sales through September 30 were
modestly below last year, we saw strong sales growth in mutual funds,
fixed and immediate annuities and retirement plans. Our broad product
portfolio continues to position us well for growth while protecting the
financial security of our members.”

P&C net operating income was $208 million for the first nine months of
the year, compared to a net operating loss of $221 million during the
same period in 2011. Weather-related claims were down significantly
through September, contributing to the climb in earnings. Through nine
months, weather claims totaled more than $1.2 billion, compared to $2.2
billion in 2011. Lower investment income through nine months of 2012
partially offset lower claims.

Nationwide's P&C segment performance includes Harleysville’s operating
results since its May 1, 2012 acquisition
date and certain transaction-related expenses, the net of which were
not material to operating income.

Year-over-year direct written premium was up 9 percent to $12.2 billion
through Sept. 30, 2012. Premiums increased across all major product
lines and channels, reflecting growth in new business writings and
improved retention. Higher average premiums also contributed to the
increase, driven by growth in insured values and rate increases,
particularly in commercial lines. The company’s main street commercial,
agribusiness and excess & surplus businesses accounted for most of the
premium growth in the comparable year-to-date periods.

In September, Nationwide Insurance was recognized in the 2012 J.D. Power
& Associates Home Insurance Study, where it performed above the industry
average. The company also successfully launched the new Join
the Nation advertising campaign for its Nationwide Insurance brand.

Financial services year-to-date net operating income was $470 million
compared to $561 million reported through Sept. 30, 2011. The
year-over-year change is largely the result of a one-time net benefit
related to customer acquisition costs in 2011 that boosted prior year
earnings.

Total customer assets grew to a record $173.2 billion as of Sept. 30,
2012, compared to $160.4 billion at the end of 2011. Asset fees and
other policy charges were higher in the first three quarters of the year
as market performance and net flows drove higher average customer asset
values.

Year-to-date sales totaled nearly $13.5 billion, down 6 percent from the
comparable period in 2011. This sales decline was expected, as earlier
this year the company modified some variable annuity features to better
align the combination of customer benefits and product profitability,
underscoring Nationwide’s long-term commitment to the business. Declines
in variable annuity sales were partially offset by growth in fixed and
immediate annuities and retirement plans.

Nationwide Funds Group also continued to grow, reporting $44.4 billion
in assets under management. Nationwide Bank continued its positive
momentum, with customer deposits reaching $3.8 billion while customer
loans were $1.8 billion.

Investments and Capital

As of Sept. 30, 2012, general account investments totaled $74.8 billion,
including nearly $4.1 billion acquired in the Harleysville transaction.
Declining interest rates and tighter credit spreads have increased the
value of the investment portfolio by $1.9 billion since year end 2011.

Net investment income was $2.3 billion during the first nine months of
2012, down 3 percent from $2.4 billion through the same period in 2011.
The decrease was driven by a decline in income from bonds and
alternative investments.

Net income through the third quarter was $764 million, up from a $712
million net loss reported during the same period in 2011. The change is
largely due to the decline in this year’s weather-related claims and to
last year’s non-operating losses in the company’s risk and capital
management programs, the result of a sharp decline in interest rates.
These programs are designed to protect the company’s long-term economic
results and statutory capital, and are functioning as intended.

Year-to-date statutory surplus was $13.7 billion, more than three times
the amount required by regulators to cover the company’s obligations to
its customers. Total policyholder equity increased to $19.0 billion,
compared to $16.2 billion as of Dec. 31, 2011.

“Nationwide’s overall year-to-date performance is a direct result of our
diverse product portfolio, unwavering commitment to provide exceptional
service to our members and highly engaged associates,” Rasmussen said.
“No one is better at serving members than Nationwide. As much as we hate
to see people impacted so drastically by the recent Hurricane, it does
remind us of why Nationwide is here: we put lives back together.”

About Nationwide

Nationwide Mutual Insurance Company, based in Columbus, Ohio, is one of
the largest and strongest diversified insurance and financial services
organizations in the U.S. and is rated A+ by both A.M. Best and Standard
& Poor’s. The company provides customers a full range of insurance and
financial services, including auto insurance, motorcycle, boat,
homeowners, pet, life insurance, farm, commercial insurance,
administrative services, annuities, mortgages, mutual funds, pensions,
long-term savings plans and specialty health services. For more
information, visit www.nationwide.com.

Nationwide, the Nationwide frame mark, and On Your Side are service
marks of Nationwide Mutual Insurance Company

________________________________

1Nationwide analyzes operating performance using non-GAAP
financial measures called “net operating income” and “net operating
revenue”,which the company believes enhances understanding and
comparability of its performance by highlighting its results from
continuing operations and the underlying profitability drivers. Net
operating income and net operating revenue exclude the impact of
realized gains (losses) on sales of investments and hedging instruments,
certain hedged items, other-than-temporary impairments, discontinued
operations and extraordinary items, all net of taxes. Certain prior-
period amounts have been reclassified to conform to current year
presentation.

2 Standard & Poor’s A+ ranking is 5th strongest of
22. These ratings and rankings reflect Rating Agency assessment of the
financial strength and claims-paying ability of Nationwide Life
Insurance Company and are subject to change at any time. They are not
intended to reflect the investment experience or financial strength of
any variable account, which is subject to market risk.

Contacts

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